Solo Oil Plc (LON:SOLO), the natural resources investment company focused on acquiring and developing a diverse global non-operated portfolio of strategic oil and gas assets, today confirmed the completion of the sale and purchase agreement to dispose of its entire 15% interest in Horse Hill Developments Limited to UK Oil and Gas plc (LON:UKOG) for a total cash consideration of £4.5 million together with a simultaneous purchase of 234,042,221 new ordinary share in UKOG equivalent to a 4.2% interest in UKOG.
For a total consideration of £4.5 million UKOG agreed to acquire Solo’s 15% shareholding and loan in HHDL. With an effective date of 28 August 2018, the total consideration will be satisfied through the issue of 234,042,221 new ordinary shares in UKOG. The Consideration Shares are due to be admitted to trading on AIM by 28 September 2018.
Solo now holds a 4.2% of the issued share capital of UKOG which will hold a 71.9% interest in HHDL which in turn holds a 65% interest in two onshore UK petroleum exploration licences, PEDL 137 and PEDL 246, which contain the Horse Hill oil discovery. In addition UKOG has interests in a further 6 licences located predominantly in the Weald Basin, onshore United Kingdom.
Solo Oil plc Managing Director, Dan Maling, commented:
“We are pleased to announce the close of this transaction ahead of the key Kimmeridge testing phase at Horse Hill. Solo remains a supporter of the project as we continue our exposure through our 4.2% stake in UKOG. We look forward to more updates from UKOG as the well testing continues.”